Gold-backed stablecoins will overtake US dollar-pegged alternatives in global markets

These digital coins offer better protection against inflation and show fewer price swings than traditional money.

Gold-backed stablecoins are likely to overtake US dollar-backed alternatives in global markets, according to Bitcoin maximalist Max Keiser. These digital coins offer better protection against inflation and display fewer price swings than traditional money. This shift could lessen America’s financial strength as countries like Russia, China, and Iran develop their own gold-backed digital currencies.

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“Russia, China, and Iran are not going to accept a US dollar stablecoin. I predict they will counter the USD stablecoin with a Gold one. China and Russia have a combined 50,000 tonnes of Gold - more than what is reported by far, ” Keiser stated in a post on X.

Stablecoin company Tether launched its gold-backed coin called Alloy (aUSD₮) in June 2024. The token is backed by Tether’s XAU₮, which stands for actual physical gold.

Gabor Gurbacs, who helped create Tether’s Gold, explained that “Tether Gold is what the dollar used to be before 1971.” Their gold token has already grown 15.7% this year, while most crypto prices have fallen.

“A gold-backed stablecoin and having the world’s biggest Bitcoin strategic reserve is the plan,” Keiser added, hinting at a broader strategy by competing nations.

Meanwhile, President Trump pushes to make dollar-backed stablecoins even stronger, forging a new financial battleground in digital currency markets. Treasury Secretary Scott Bessent announced at the March 7 White House Crypto Summit that dollar-pegged stablecoins would be a top priority for the Trump administration.

Federal Reserve Governor Christopher Waller supports using stablecoins to strengthen the US dollar worldwide. American lawmakers have crafted new bills, including the Stable Act of 2025 and a GENIUS stablecoin bill to regulate these digital assets.

The clash between dollar-backed and gold-backed stablecoins showcases deeper global tensions. Nations seeking to reduce US influence see gold-backed tokens as a way to escape dollar dependence.

This struggle continues past currency conflicts but applies today’s technology. Gold’s traditional role as a safe investment now combines with blockchain to create money outside US control.

The outcome of this currency competition could reshape global financial power structures as nations strive for dominance in the rapidly evolving digital economy.